India Gets Fourth Set of Swiss Bank Details; Its Importance

India received the fourth set of Swiss bank account details of its nationals and organisations as part of an annual automatic information exchange under which Switzerland has shared particulars of nearly 34 lakh financial accounts with 101 countries.

The Federal Tax Administration exchanged information related to identification, account and financial information, which includes name, address, country of residence and tax identification number, as well information concerning the reporting financial institution, account balance and capital income.

The exchanged information allows the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns.

SWISS MONEY; EXCHANGE

The fourth exchange took place last month. The next set of information is likely to be shared by Switzerland in September 2023. India had received the first set of details from Switzerland under AEOI (Automatic Exchange of Information) in September 2019. It was among the 75 countries to get such information that year. Last year, India was among 86 such partner countries.

SWISS MONEY; USEFUL

The data received is useful for establishing a strong prosecution case against those who have any unaccounted wealth. This comes as the information handed over has entire details of deposits and transfers as well as of all earnings, including through investments in securities and other assets.
Switzerland had agreed to the AEOI with India after a long process, including a review of the necessary legal framework in India on data protection and confidentiality.

SWISS; FTA

The Federal Tax Administration is responsible for value added tax, direct federal tax, withholding tax and other federal levies. It implements double taxation agreements, provides international administrative assistance in tax matters, collects withholding taxes for other states in accordance with treaties and compiles tax statistics. Find out everything about us: portrait, tasks and strategy with objectives, activity report, organisation chart and management. Suppliers will also find information on electronic invoicing for suppliers here.

Around 9,000 reporting financial institutions (banks, trusts, insurers, etc.) are registered with the FTA. These institutions collected the data and transferred it to the FTA. The FTA sent information on around 3.4 million financial accounts to the partner states and received information on around 2.9 financial accounts from them. The FTA cannot provide any information on the amount of financial assets.

Switzerland has committed itself to adopting the global standard for the international automatic exchange of information in tax matters. The legal basis for the implementation of the AEOI in Switzerland came into force on January 1, 2017.

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